1. Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows:

   	Book Value Dr (Cr)	Fair Value Dr (Cr)
   Current assets	$ 500,000	$ 700,000
   Land, buildings and equipment (net)	2,000,000	3,500,000
   Liabilities	(600,000)	(550,000)
   Capital stock	(500,000)
   Retained earnings	(1,400,000)

   In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair value of $400,000. Now assume Springfield uses pushdown accounting at the date of acquisition. What amount does it credit to its Pushdown Capital account on its own books?

   	A.	$0
   	B.	$3,100,000
   	C.	$4,500,000
   	D.	$4,400,000